Specialty Fashion group are in advanced discussions with an offshore suitor, sources have confirmed. A $165 million takeover offer is evidently on the table from a Middle Eastern financial conglomerate with a South African link.
Source: Australian Financial Review
Street Talk can reveal the value fashion retailer has received a $165 million [including through-the-cycle debt] takeover offer from a Middle Eastern financial conglomerate with a South African link.
The offer price of 70¢ a share has been pegged at a 35 per cent premium to the last close of 52¢.
It is understood the suitor is advised by SLM Corporate principal Barry Lewin, Baker McKenzie and PwC Australia.
Specialty Fashion, which operates almost 1100 stores under brands such as Millers, Katies, Crossroads, Rivers and City Chic, is taking its counsel from Luminis Partners and Arnold Bloch Leibler.
Specialty Fashion’s total sales have climbed steadily over the last 10 years from $510 million to $826 million, but the company is earning a fraction of what it was before global chains such as Zara, H&M and Uniqlo appeared on the scene.
The company earned $4 million before interest and tax in 2016 compared with $76 million in 2006 and margins have fallen to a fraction of those at other apparel retailers. Its earnings have been weighed down by losses in its Rivers brand in recent years, and unseasonably warm weather.
Cotton On is Specialty Fashion’s largest shareholder with 20 per cent stake.
Specialty Fashion’s market capitalisation was $100 million based on its Tuesday closing price.
Source: AFR http://www.afr.com/street-talk/specialty-fashion-group-in-takeover-talks-sources-say-20170207-gu7m4s
2 comments
As a regular customer and previou employee and now pregnant i just want to talk about how disappointed i am with the lack of maternity clothes. I’m usually an 18 so a medium in City chic but needs a 22 in Crossroads. I went into my local Crossroads only to be told that the few maturity items they do have are specifically sold online, how am i to try these first? And as a previous employee of City chic, quite frankly disappointed that they have no maternity items what so ever, I’m 23 and while i like some of the clothes in Autograph find that they are sometimes too old for my age and clothing preference. Specialty Fashion Group has an aim and i know of the larger brands City chic and Autograph it’s to be able to empower larger women and help them feel sexy and good in what they’re wearing but this seems like a miss when it comes to the maternity factor.
Thanks for your comment but please note that we are not Specialty Fashion Group and have published an article relevant to this business. May I suggest you contact them directly regarding your concerns as a customer?